UK government unveils major financial reform package after Brexit
Plans seek to reinforce London as a global finance center after leaving the EU.
The U.K. government today announced plans to ditch more EU financial rules after Brexit in a major package of financial reforms.
Among the over 30 regulatory measures, dubbed the Edinburgh reforms, the U.K. plans to rework EU rules in areas including consumer disclosures, prospectuses, securitization, long-term investment funds, short selling, payments, consumer credit and “unbundling” investment research.
“The Edinburgh Reforms seize on our Brexit freedoms to deliver an agile and home-grown regulatory regime that works in the interest of British people and our businesses,” U.K. Chancellor Jeremy Hunt said.
The government will also review controversial pieces of U.K. post-crisis financial rules: the “ringfencing” rules which split up investment and retail banking, and the senior manager regime that holds top executives responsible for failings.
U.K. Prime Minister Rishi Sunak has in the past referred to City reforms as a deregulatory “Big Bang” like in the 1980s. But today’s announcements pledge to build on the U.K.’s “consistently high regulatory standards” in a shift in emphasis.
“The U.K. is a financial services superpower — and we have long benefited from, and are committed to, high quality regulatory standards,” said City Minister Andrew Griffith.
The measures are intended to reinforce London’s position as a global finance center and take the lead on green and digital finance. This is the second package of reforms to revise the EU financial rulebook after Brexit and follows the publication of the Financial Services and Markets Bill back in July.